In early trading on Monday (Jan. 6), the US dollar index fell over 1%, reaching a low of 107.46, its largest drop since Aug 2, 2024. Reports suggest that Trump's team is considering tariffs targeting key imports like steel, aluminum, and medical supplies instead of a blanket 10-20% on all goods.

However, Trump dismissed these reports as "fake news," stating his tariff stance remains unchanged. Following his comments, the dollar regained about one-third of its losses. Aggressive tariffs could risk "re-inflation" in the US, potentially delaying rate cuts by the Fed, which projected slower rate reductions through 2025.